Lynas Rises to Two-Week High as Japan Demand Concern Eases

March 23 (Bloomberg) -- Lynas Corp., an Australian rare
earths developer, rose to the highest in more than two weeks in
Sydney trading as concern eased over a drop in demand from Japan
after this month’s earthquake and tsunami.

Lynas, set to become the first new source of supply outside
China in at least two decades, rose 5.5 percent to A$2.11 at
10:40 a.m. local time, the highest since March 4. Arafura
Resources Ltd. rose 3.8 percent. Lynas, based in Sydney, has
gained more than fourfold in the last 12 months.

Japan is the world’s largest importer of rare earths, used
by manufacturers including Toyota Motor Corp., the world’s
largest seller of hybrid autos, and Hitachi Metals Ltd. Molycorp
Inc. and Rare Element Resources Ltd. gained yesterday in North
American trading amid rising prices and reduced concern that the
Japanese disaster will curb demand, said Dahlman Rose & Co.

“Manufacturing activity is recommencing in Japan,” Anthony
Young, an analyst at Dahlman Rose, said yesterday.

Prices for lanthanum, a rare-earth mineral used in refinery
catalysts, have gained 79 percent since the start of March,
while cerium, used in magnets, has surged 69 percent, according
to Steelhome prices on Bloomberg.

Rare earths are a group of 17 metal elements used in
batteries, wind turbines, cell phones and in catalysts to reduce
auto-exhaust emissions. China produces about 95 percent of the
global supply of rare-earth metals.